OpenAI, the maker of ChatGPT, has decided to maintain its nonprofit status, abandoning plans to become a for-profit company. The company confirmed its intention to convert its for-profit business unit into a Public Benefit Corporation (PBC) while still being controlled by the nonprofit entity. This move represents a shift from previous considerations of spinning out the nonprofit entity into a for-profit one. OpenAI’s CEO, Sam Altman, emphasized that the decision would not hinder the organization’s ability to secure funding for AI development, which requires substantial financial resources. In contrast, in 2024, OpenAI viewed the for-profit entity as essential for raising capital for computational needs. The company’s revenue is expected to triple by 2026, with forecasts of $12.7 billion in 2025. In March, OpenAI secured a $40 billion investment from Softbank at a valuation of $300 billion. The decision to remain a nonprofit comes amid controversies, including a lawsuit from Tesla CEO Elon Musk alleging deceptive practices by OpenAI’s leadership. Musk has since launched xAI, a developer of AI chatbots, citing anti-competitive behavior by OpenAI. OpenAI’s governance announcement on May 5 underscores its commitment to its nonprofit mission, aligning with its original founding principles in 2015. The company’s revenue projections and strategic decisions are closely watched in the competitive AI landscape.